Stifel Nicolaus noted, "Traffic trends have undoubtedly slowed in recent weeks based on: 1) A negative impact from the storm Sandy in late October/ November (we estimate as much as 15% of Ethan Allen's U.S. total business is in the NYC/Long Island/Connecticut/Northern New Jersey corridor). 2) Increasing concerns by consumers about the fiscal cliff/rising taxes. 3) Falling consumer confidence. 4) A “set-up” of sorts with the contribution margin having been so high in the September quarter that it could prove disappointing this quarter on a relative basis."